The European real estate market has faced a turbulent few years, shaped by economic uncertainty, rising interest rates, and shifting buyer preferences. As we look toward 2024, Greece stands out as a compelling case for real estate enthusiasts, investors, and prospective homeowners. Will the Greek market see a boom, bust, or find a balance in the coming year? Let’s explore key predictions for 2024.

The Greek Real Estate Market in 2023: A Recap

Greece experienced significant growth in its real estate sector in 2023, driven by:

• Foreign Investment: The Golden Visa program attracted buyers from China, the Middle East, and Europe.
• Tourism Growth: Record-breaking tourism numbers boosted demand for short-term rental properties.
• Urban Development: Cities like Athens and Thessaloniki saw increased interest in luxury apartments and urban renovations.

However, rising inflation and higher mortgage rates have tempered some of this momentum.

Prediction 1: Sustained Demand from Foreign Investors

Why It’s Likely to Boom:
Greece remains one of the most affordable real estate markets in Europe, offering exceptional value compared to countries like Italy, Spain, or France. The Golden Visa program, which grants residency to property buyers who invest €250,000 or more, will continue to attract foreign investors, particularly in coastal and island locations.

Hotspots for 2024:

• Athens: High demand for short-term rentals and urban apartments.
• Corfu, Crete, and Rhodes: Popular among retirees and investors looking for holiday homes.
• Peloponnese: A rising star with untapped potential in eco-tourism and sustainable living.

Prediction 2: Cooling of the Golden Visa Program

Why It Could Bust:
With the threshold for Golden Visa eligibility rising to €500,000 in many prime locations (like Athens and Mykonos), Greece risks losing price-sensitive investors to other European countries. This shift may slow property transactions in urban areas and some islands.

Impact:

• Reduced demand in Athens and Santorini.
• Possible shift to secondary markets like Ioannina, Larissa, or Kalamata, where the €250,000 threshold still applies.

Prediction 3: A Balanced Market Driven by Domestic Buyers

Why It Could Balance:
While foreign buyers dominate luxury and coastal markets, the domestic market is stabilizing. Younger Greek buyers are entering the market thanks to government subsidies and affordable financing options for first-time homeowners.

Key Drivers:

• Government Incentives: Subsidies for energy-efficient homes will encourage renovations and new developments.
• Rural Markets: Greeks are showing renewed interest in rural properties, where prices are lower, and quality of life is higher.

Prediction 4: Short-Term Rentals: Continued Growth but with More Regulation

Why It’s Likely to Balance:
Tourism remains a cornerstone of Greece’s economy, and short-term rental platforms like Airbnb will continue to thrive in 2024. However, tighter regulations may emerge to address housing shortages in urban centres.

Predicted Trends:

• Stricter Licensing: Cities like Athens and Thessaloniki may cap the number of properties available for short-term rental.
• Sustainable Rentals: Demand for eco-friendly and energy-efficient vacation homes will grow.

Prediction 5: A Focus on Energy-Efficient Properties

Why It’s Likely to Boom:
Energy efficiency is becoming a top priority for European buyers, and Greece is no exception. Renovations aimed at improving energy performance (e.g., solar panels, insulation) are expected to increase property values significantly in 2024.

Market Insights:

• Properties with high energy ratings will see a 10–20% price premium.
• Coastal homes with sustainable features will attract both investors and eco-conscious buyers.

Risks to Watch in 2024

• Economic Slowdown: Inflation and high interest rates could dampen buyer confidence.
• Supply Chain Issues: Construction costs remain elevated, which may delay new developments.
• Climate Risks: Coastal flooding and wildfire threats may influence buyer preferences.

Conclusion: Boom, Bust, or Balance?

In 2024, the Greek real estate market is likely to find a balance, with steady demand from both foreign and domestic buyers. While luxury markets may cool slightly due to changes in the Golden Visa program, emerging locations and energy-efficient homes will drive growth. For investors, Greece remains a promising destination with a mix of opportunities across its diverse regions.

Pro Tip: Stay updated on regulations and market trends by consulting local experts or platforms like Greek Property Exchange or Visit Greece.

Whether you’re seeking a vacation home, investment property, or your next permanent residence, 2024 promises to be an exciting year for real estate in Greece!